DHS awarded $54.5M for Hurricane Irma relief to Disaster Solutions Alliance, LLC via a sole-source contract

Contract Overview

Contract Amount: $54,520,413 ($54.5M)

Contractor: Disaster Solutions Alliance, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-22

End Date: 2017-11-16

Contract Duration: 55 days

Daily Burn Rate: $991.3K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF FEEDING MISSION IN SUPPORT OF HURRICANE IRMA IN THE US VIRGIN ISLANDS

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.5 million to DISASTER SOLUTIONS ALLIANCE, LLC for work described as: IGF::CT::IGF FEEDING MISSION IN SUPPORT OF HURRICANE IRMA IN THE US VIRGIN ISLANDS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. The contract duration was relatively short, aligning with immediate disaster relief needs. 3. Services provided fall under Facilities Support Services, indicating a focus on infrastructure restoration. 4. The award was a delivery order, suggesting it was part of a larger existing agreement or framework. 5. No small business set-aside was utilized for this significant award. 6. The contract type was Time and Materials, which can pose cost control challenges if not closely managed.

Value Assessment

Rating: questionable

Benchmarking the value for this specific disaster relief effort is challenging due to its unique and urgent nature. However, the sole-source award and Time and Materials pricing structure warrant scrutiny. Without competitive bids, it's difficult to ascertain if the government secured the best possible price. The relatively short performance period suggests a focus on immediate needs, but the total value indicates substantial resource allocation. Further analysis would require comparing the rates and overall cost to similar disaster response contracts, if available, and examining the specific services rendered against the billed amounts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used in situations where only one vendor can provide the required goods or services, or in urgent circumstances like disaster response where time is critical. The lack of competition means that price discovery through bidding was bypassed, potentially leading to higher costs for the government compared to a fully competed contract. The justification for a sole-source award in a disaster scenario needs careful review to ensure it was indeed the most appropriate procurement method.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in taxpayers paying more for the services rendered. The absence of multiple bids means there was no direct pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries of this contract were the residents and infrastructure of the U.S. Virgin Islands affected by Hurricane Irma. The services delivered likely included essential support for restoring and maintaining facilities in the aftermath of the hurricane. The geographic impact was concentrated in the U.S. Virgin Islands, a region severely impacted by the storm. The contract supported the Federal Emergency Management Agency's (FEMA) disaster relief operations, a critical government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award bypasses competitive pricing, potentially increasing costs.
Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of transparency in the sole-source justification requires further investigation.
No small business participation noted, potentially missing opportunities for smaller entities.

Positive Signals

Awarded to address urgent needs during a critical disaster response.
Contract duration aligned with immediate post-disaster requirements.
Services provided were essential for recovery efforts in a devastated area.

Sector Analysis

The Facilities Support Services sector encompasses a broad range of services essential for the operation and maintenance of physical infrastructure. In the context of disaster relief, these services become paramount for restoring essential functions and ensuring safety. The market for such services can be highly variable, with specialized firms often stepping in during emergencies. This contract, valued at over $54 million, represents a significant investment in post-disaster recovery, highlighting the critical role of private sector support in government emergency response operations. Comparable spending benchmarks are difficult to establish due to the unique nature of disaster-specific needs and the urgency driving procurement.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have included specific subcontracting requirements for small businesses based on the provided data. The significant value of the award suggests that if subcontracting opportunities were present, they could have provided substantial work for small businesses. The absence of a set-aside or explicit small business focus means that opportunities for smaller, specialized firms to participate in this critical disaster relief effort may have been missed.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). As a delivery order, it likely operates under a broader contract vehicle that may have its own oversight mechanisms. The Inspector General for DHS would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency regarding the justification for the sole-source award and the detailed breakdown of costs under the Time and Materials structure would be key areas for oversight.

Related Government Programs

Hurricane Relief Operations
Disaster Recovery Services
Facilities Maintenance and Support
Emergency Response Contracts
Federal Emergency Management Agency (FEMA) Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.5 million to DISASTER SOLUTIONS ALLIANCE, LLC. IGF::CT::IGF FEEDING MISSION IN SUPPORT OF HURRICANE IRMA IN THE US VIRGIN ISLANDS

Who is the contractor on this award?

The obligated recipient is DISASTER SOLUTIONS ALLIANCE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $54.5 million.

What is the period of performance?

Start: 2017-09-22. End: 2017-11-16.

What specific services did Disaster Solutions Alliance, LLC provide under this contract?

The contract falls under NAICS code 561210, Facilities Support Services. While specific details are not provided in the summary data, these services typically encompass a wide range of activities necessary for the operation and maintenance of facilities. In the context of Hurricane Irma relief, this could include debris removal, temporary facility setup and management, infrastructure repair, utility support, security services, and general site maintenance. The Time and Materials (T&M) pricing structure suggests that the contractor was reimbursed for direct labor hours and costs incurred, plus a markup. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not available in this dataset but would be crucial for a full understanding of the services rendered and their necessity.

How does the $54.5 million award compare to typical spending for disaster relief contracts of this nature?

Directly comparing this $54.5 million award to 'typical' disaster relief contracts is challenging due to the highly variable nature of natural disasters and the specific needs they create. Hurricane Irma was a major Category 5 storm that caused widespread devastation, particularly in the U.S. Virgin Islands. Large-scale recovery efforts often require substantial funding. However, the fact that this was a sole-source, Time and Materials contract for Facilities Support Services warrants scrutiny. While the total amount may be justifiable given the scale of the disaster, the procurement method and pricing structure are key areas for assessing value for money. Without access to detailed cost breakdowns and comparisons with other sole-source disaster response contracts for similar-sized events, a definitive benchmark is difficult to establish.

What are the risks associated with a sole-source, Time and Materials contract in a disaster scenario?

Sole-source contracts, by definition, eliminate competition, which is a primary mechanism for ensuring fair pricing and value. In a disaster scenario, the urgency might necessitate a sole-source award, but it increases the risk that the government may not receive the most cost-effective solution. The Time and Materials (T&M) pricing structure carries its own set of risks. It reimburses the contractor for actual labor hours and material costs, plus a profit margin. This can lead to cost overruns if the scope of work is not well-defined, if work is inefficiently performed, or if labor hours and material costs are inflated. Effective oversight, clear task orders, and diligent monitoring of hours and expenses are critical to mitigate these risks and ensure taxpayer funds are used appropriately.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. In disaster situations, sole-source procurements are often justified under urgent and compelling circumstances, where a delay in competition could result in a significant loss of life or property damage. For Hurricane Irma, which caused extensive damage in the U.S. Virgin Islands, FEMA likely argued that immediate action was required to provide essential facilities support services. The specific justification would typically be documented in a Justification and Approval (J&A) document, which would detail why only one source could meet the requirement and why competition was not feasible or would cause unacceptable delays. Without access to this J&A, the precise rationale remains unconfirmed.

What is the track record of Disaster Solutions Alliance, LLC in government contracting, particularly in disaster response?

Information regarding the specific track record of Disaster Solutions Alliance, LLC, particularly in disaster response, is not detailed in the provided summary data. A comprehensive assessment would require reviewing their past performance on federal contracts, including client feedback, past performance evaluations, and any history of contract disputes or awards. Given that this was a sole-source award for a significant amount ($54.5M) during a critical disaster, it implies that FEMA either had prior positive experience with the company, or the company was identified as capable of meeting the urgent needs. Further investigation into their contract history and capabilities would be necessary to fully evaluate their track record.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12420 MILESTONE CENTER DRIVE STE 150, GERMANTOWN, MD, 20876

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,520,413

Exercised Options: $54,520,413

Current Obligation: $54,520,413

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $17,408,422

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7017D0004

IDV Type: IDC

Timeline